Entries in Fiat Chrysler Automobiles
(2)

FCA's latest business plans calls for the Chrysler 200 (shown) and Dodge Dart to be phased out in favor of more trucks and SUVs.Earlier this week, Fiat Chrysler Automobiles (FCA) announced some major changes to its business plan. What sparked the most interest was the delay in launching Alfa’s new lineup, and Sergio Marchionne’s statement that Chrysler would be dropping the Chrysler 200 and Dodge Dart, replacing them with crossovers a these cars came to the endow their product cycle. Lost in all of this is the fact that this is the 107th (only a slight exaggeration) change to the company’s business plan since Fiat scooped up Chrysler in the riptide of the global economic downturn.

Perhaps prophetically, the presentation begins with a picture of Mark Twain and, perhaps, his most famous quote: “The reports of my death have been greatly exaggerated.” Though I am certain Marchionne and his team thought this funny, it arrives after news stories chronicling FCA’s reliance on purchasing credits from other automakers in order to meet its U.S. Greenhouse Gas Compliance (a.k.a. fuel economy) targets, a softening of the global market (especially China), slowing U.S. sales on the horizon, FCA’s hounding of GM as a merger partner, and more. The company may not be dead, but it looks desperate.

Luca Montezemolo in happier times.After 23 years at the helm, Luca Cordero di Montezemolo has left Ferrari; left as in pushed out the door. For Montezemolo it was an ironic end to a career that began with the wunderkind modernizing the Ferrari F1 team for Enzo Ferrari and leading it to success after years of failure, and ended with him lobbying for a return to rules more favorable to Maranello, as he steered Ferrari’s car division to record profits. He jealously guarded the Prancing Horse’s image and position, but was blind to the needs of the rest of the organization as it seeks Ferrari’s help to extricate itself from a huge pile of debt.

Fiat Chrysler Automobiles (FCA) is about to embark on an IPO that will see its shares listed on the New York Stock Exchange (NYSE). Despite having the U.S. government essentially give Chrysler to Fiat for nothing, FCA has debts of nearly $3 billion and a number of stagnant brands. It needs the IPO to be a success if it is to raise the money necessary to right this ship, though it will also have to consider eliminating some brands to streamline the organization. Floating a large minority stake in Ferrari on the NYSE should help raise at least $1.0 billion dollars, and put a significant dent in FCA’s debt. However, it can’t do that if the face of Ferrari, it’s F1 team, is struggling to finish outside of the podium positions week after week.